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REVENUE
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE
3. REVENUE
Our revenue is generated from the sale of products and services. Product revenue consists of sales of instruments and consumables used in genetic analysis. Service and other revenue consists of revenue generated from genotyping and sequencing services, instrument service contracts, development and licensing agreements, and, prior to the Spin-Off of GRAIL on June 24, 2024, cancer detection testing services related to the GRAIL business.
Revenue by Source
Q2 2024Q2 2023
In millionsSequencingMicroarrayTotalSequencingMicroarrayTotal
Consumables$729 $78 $807 $734 $70 $804 
Instruments116 4 120 193 4 197 
Total product revenue845 82 927 927 74 1,001 
Service and other revenue171 14 185 156 19 175 
Total revenue$1,016 $96 $1,112 $1,083 $93 $1,176 
YTD 2024YTD 2023
In millionsSequencingMicroarrayTotalSequencingMicroarrayTotal
Consumables$1,420 $149 $1,569 $1,419 $148 $1,567 
Instruments226 8 234 346 10 356 
Total product revenue1,646 157 1,803 1,765 158 1,923 
Service and other revenue349 36 385 293 47 340 
Total revenue$1,995 $193 $2,188 $2,058 $205 $2,263 
Revenue by Geographic Area
Based on region of destination (in millions)Q2 2024Q2 2023YTD 2024YTD 2023
Americas$640 $640 $1,243 $1,256 
Europe289 303 568 564 
Greater China(1)
75 115 153 206 
Asia-Pacific, Middle East, and Africa(2)
108 118 224 237 
Total revenue$1,112 $1,176 $2,188 $2,263 
_____________
(1)Region includes revenue from China, Taiwan, and Hong Kong.
(2)Region includes revenue from Russia and Turkey.
Performance Obligations
We regularly enter into contracts with multiple performance obligations. These contracts are believed to be firm as of the balance sheet date. However, we may allow customers to make product substitutions as we launch new products. The timing of shipments depends on several factors, including agreed upon shipping schedules, which may span multiple quarters. Most performance obligations are generally satisfied within a short time frame, approximately three to six months, after the contract execution date. As of June 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $717 million, of which approximately 82% is expected to be converted to revenue in the next twelve months, approximately 13% in the following twelve months, and the remainder thereafter.
Contract Assets and Liabilities
Contract assets, which consist of revenue recognized and performance obligations satisfied or partially satisfied in advance of customer billing, were $16 million and $18 million as of June 30, 2024 and December 31, 2023, respectively, and were recorded in prepaid expenses and other current assets.
Contract liabilities, which consist of deferred revenue and customer deposits, as of June 30, 2024 and December 31, 2023, were $305 million and $329 million, respectively, of which the short-term portions of $238 million and $252 million, respectively, were recorded in accrued liabilities and the remaining long-term portions were recorded in other long-term liabilities. Revenue recorded in Q2 2024 and YTD 2024 included $70 million and $165 million, respectively, of previously deferred revenue that was included in contract liabilities as of December 31, 2023.